Malaysia Set to Raise Debt-to-GDP Cap After Key Parliament Vote
- Higher debt limit to allow extra borrowing: finance minister
- Malaysia to boost Covid-19 fund to 110 billion ringgit
A near-empty road at Bukit Bintang during a Movement Control Order (MCO) due to Covid-19 in Kuala Lumpur.
Photographer: Samsul Said/BloombergThis article is for subscribers only.
After clearing a key vote in parliament, Malaysia is set to raise the limit on government debt for the second time in a little over a year as it seeks to fund additional pandemic support measures and bolster its economic recovery.
A majority of lawmakers in the lower house voted for increasing the statutory debt ceiling to 65% of gross domestic product until 2023, from 60%. The bill will next head to the senate, controlled by Prime Minister Ismail Sabri Yaakob’s coalition, before it’s signed into law by the king.